Integrated Annual Review 2012 Annual Financial Report 2012 Mineral Resources and Mineral Reserves Regional overview  

1.2 Global footprint

The new Gold Fields is a truly global mining company, with:

  • Six producing mines in Australia, Ghana, South Africa and Peru
  • Advanced resource development projects and growth projects in Finland, Mali, the Philippines and Peru
  • Advanced drilling projects in Canada, Kyrgyzstan and Chile
  • Greenfields exploration projects in Argentina, Australia, Canada, Ethiopia, Peru, Mali and the Philippines

In addition, two mines previously owned by Gold Fields – the mature, deep underground KDC and Beatrix mines in South Africa – belong to the now independent entity, Sibanye Gold (p14).

Figure 1.1: Gold Fields global presence

Gold Fields global presence

Our business: Adding value throughout the gold lifecycle

  2012 Inputs        
  Optimising our operations   Growing Gold Fields   Securing our future
Operating costs: US$3.01bn
Capital expenditure: US$1.24bn
Energy: 25,304 TJ
Water: 88,477ML

Near-mine exploration costs: US$65m
Greenfields exploration costs: US$129m (excludes Far Southeast)

Total employees: 48,120
Training spend: US$50m
Stakeholders engaged: Investors, unions and employees, governments, communities, NGOs (p52)

The Way Forward for Gold Fields

Arrow Safety and wellbeing of our employees
Arrow Focus on cash generation
Arrow Deliver South Deep
Arrow Optimise financial gearing
Arrow Implement a strong dividend policy
Arrow Pursue sustainable development

Discovering gold bearing ore across the world   Identifying and modelling extraction opportunities   Design and construction of mines and infrastructure
Bullet 11 early stage greenfields projects across 7 countries
Bullet Exploration offices in 5 countries

Adding value

Bullet Internal Greenfields Exploration team to identify, assess and develop opportunities
Bullet Proprietary Global Business Area Rating System to provide in-depth analysis on prospective growth opportunities (p101)
Bullet 3 advanced stage greenfields projects
Bullet 4 near-mine projects

Adding value

Bullet Internal Concept and Studies team to manage projects through to pre-feasibility
Bullet Propriety Acquisition and Competitor Intelligence System. This is based on an extensive database to provide real-time information on trends and developments in the gold industry – and enhances our decision-making capabilities
Bullet 4 major growth projects in Finland, Mali, Peru and the Philippines
Bullet ‘Steady-state’ growth pipeline with new mine in construction (South Deep)

Adding value

Bullet International Projects team to take projects from pre-feasibility to construction
Bullet Well-established Capital Investment Framework
Bullet Conservative economic hurdles and stringent stage gates

  2012 Outputs        
  Optimising our operations   Growing Gold Fields   Securing our future
Attributable profit: US$691m
Operating cash flow: US$1.44bn
Production: 3.25m ounces Tailings/waste rock: 188m tonnes CO2-e: 6.3m tonnes

Change to attributable Mineral
Reserves: -9 million oz
Change to attributable Mineral Resources: 2 million oz

Shared value creation:
Local employment: US$1.07bn
Government: US$618m
Local suppliers: US$3.45bn
SED: US$136m

Physical extraction of gold bearing ore   Physical and chemical processing of ore   The sale of refined gold
Assets (post-unbundling)
Bullet 5 x open pit or shallow underground mechanised operations in Australia, Ghana and Peru
Bullet 1 x deep-level, bulk underground mechanised operation in South Africa

Adding value

Bullet A solid platform for international growth
Bullet Focus on cash generation and returns to investors
Bullet Fully mechanised, internationally diversified portfolio
Bullet Management of all-in costs using Notional Cash Expenditure
Bullet Carbon in leach plants (CIL)
Bullet Carbon in pulp plants (CIP)
Bullet Heap leaching facilities

Adding value

Bullet CIL/CIP:
For higher grade ores due to higher capital and operating costs
Bullet Heap leaching:
For lower grade ores due to lower capital and operating costs
Bullet Smelting: Production of doré bars (92% purity)
Bullet Refining: Doré bars refined into gold bars (99.9% purity)
  Gold uses
Bullet Gold is sold on to authorised bullion banks
Bullet Bullion banks sell-on to central banks, investors, the jewellery industry and technology sectors

Figure 1.2:
Gold uses and demand

(% of global gold demand in 2012)

Gold uses and demand